On the Edge Financial Daily: FTEC’s former MD ordered to restitute RM2.5m in IPO funds
- Written by Financial Daily
Wednesday, 18 November 2009 11:38
KUALA LUMPUR: Kenneth Vun @ Vun Yun Liun, former managing director and shareholder of FTEC Resources Bhd, has been ordered by the High Court to restitute to the company RM2.496 million, the amount of the company’s funds he had caused to be misused for his personal benefit.
The Securities Commission (SC) said in the landmark court ruling on Nov 11, Vun was also restrained from directly or indirectly managing FTEC funds and any of the group’s companies for two years after he had complied with the restitution order, unless with prior SC approval.
“This is the first time ever a company director has been ordered by the court to restitute company funds,” the SC said in a statement yesterday, calling the scoring of “another milestone in its relentless efforts to enhance corporate government”.
FTEC has been renamed Mangotone Group Bhd.
The SC said the judgment marked a major success for the regulator which had sued Kenneth Vun on Sept 26, 2007.
It said its investigation into the utilisation of the FTEC public issue proceeds showed that Vun had utilised a portion of the proceeds for his own benefit and personal use, constituting a breach of the conditions set by the SC when it approved its listing.
The SC said the civil action was brought under Section 100 of the Securities Industry Act 1983, which allows the court to make a restitution order upon application by the SC if it found a person to have contravened a relevant requirement.
“The SC views the judgment as a timely reminder to directors of listed companies that they must not treat company funds as their own and that they must at all times discharge their duties with honesty, integrity and accountability,” it said.
This article appeared in The Edge Financial Daily, November 18, 2009.
Of course FTEC the stock does not exist no more.
It has changed its name to TecAsia. TecAsia had then changed its name to Mangotone.
And Mangotone in Aug 2009 was classified as a GN3 stock!
- Saturday August 15, 2009
Mangotone slips into Bursa's GN3
PETALING JAYA: Mangotone Group Bhd is now an affected issuer of Bursa Malaysia’s Guidance Note 3 (GN3) and required to submit a regularisation plan to the stock exchange regulator for approval in the next 12 months.
In a filing to Bursa on Tuesday, the company said it had defaulted on debt and interest payments due to operational difficulties in the past two quarters, lower trade facilities, decline in sales and low margins.
Further in an announcement on Wednesday, Mangotone said its cash reserves and collections from receivables and sales would be prioritised to sustain operations, replenish fast moving stocks and to pay essential overheads.
Do refer blog posting: This Stock Called Mangotone (FTec)
Dear Moola,
ReplyDeleteThe fine should have been RM25 million. He got off lightly to my mind.
Yup agrees it might be too lightly for a Ferrari driver.
ReplyDeleteSome believes that by changing the company names it could save the company. Maybe not for this case.
Anyway, good work SC keep it up. Somehow, I think the prosecution speed of a case need to be quicken.
dude,
ReplyDeletebetter late than never...